May 29 (Reuters) - Euro zone government bond yields

inched up on Thursday, as investors ditched safe havens for

riskier assets after a U.S. federal court blocked most of

President Donald Trump's sweeping tariffs.

Investors moved away from bonds, gold, and safe-haven

currencies such as the yen and Swiss franc after the

Manhattan-based Court of International Trade found on Wednesday

that Trump overstepped his authority by imposing

across-the-board duties on imports from the United States'

trading partners.

The Trump administration has appealed the ruling.

Germany's 10-year government bond yield, the

euro area benchmark, rose 4 basis points (bps) to around 2.59%.

It fell to around 2.51% on Tuesday, its lowest level since May

8.

"For bonds and FX, the timing is convenient for an extension

of the most recent trading momentum, where the dollar has

already shown signs of rebounding and long-end bond yields have

been facing upward pressure," said Frances Cheung, head of FX

and rates strategy at Singapore-based OCBC.

Long-term bond yields have risen this month on growing

concern about rising debt levels among big economies such as the

United States and Japan.

German 30-year government bond yields edged up 2

bps to around 3.07%, while the 2-year government bond yield

, more sensitive to European Central Bank policy

rates, rose 3 bps to 1.83%.

Markets have fully priced in a 25-bps interest rate cut from

the ECB when it meets next week.

They also indicated a deposit facility rate at 1.72%

in December, from 1.55% in mid-April.

Italy's 10-year yield rose 3 bps to 3.57%,

leaving the spread between Italian and German yields

around 97 bps.

"Development on tariff and trade relations remains fluid.

Investors may be reluctant to load heavy positions on either

side of the trade," Cheung added.

(Reporting by Linda Pasquini; editing by Dhara Ranasinghe and

Emelia Sithole-Matarise)